I understand there are a lot of older folk on this sub, people who have entrepreneurs longer than I’ve been alive. (18M)

I’ve been noticing a cycle where many entrepreneurs just jump from startup to startup for years and never get anywhere significant. My dad was one such example.

I remember him remarking that he’d probably be a millionaire by now if he just put all of that effort into real estate investing.

My current actionable steps which I’ve been taking have been to learn as many high value skills as possible and meet other highly capable individuals to network with. Luck is where preparation meets opportunity.

Most kids my age who want to be rich normally just get trapped into some Tate like multi-level marketing scheme, whereas I’m taking a much longer term approach to it. Although I admit I’ve fallen for that stuff in the past.

By startup, I mean a totally new idea.

So my question is: Should I just forget startups and put my efforts into real estate? If you were in my situation with what you know, what would you do?

For a brief idea of what I’m thinking for real estate: Get an degree majoring in accounting and minoring in real estate. Continue to level up my financial literacy. Move to an economically expanding area such as Texas or Florida, and more specifically the suburbs of a large city. Work for a real estate investing company so I can understand the backend structure of how they invest and manage their properties. Possibly try to work for my wrestling coach for free who is already a mid level real estate investor. Join real estate clubs. Get my license so I can save on commissions and don’t need an agent to access MLS. Utilize programs such as the USDA loan program or FHA loan program. More specifically use the FHA loan program to get a 3.5% down payment on a multifamily property that I would then house hack.

Of course I know that real estate investing will have a set of challenges in its own right.

  • Careeropportunity365BEnglish
    1·
    1 year ago

    Idk man, the real estate market is absolutely crazy right now with high interest rates and many buyers (investing) only buying in cash or doing seller financing. Rents are decreasing and the cost of labor and material are going up. I totally feel your dad, I’m 30(M) and have started multiple companies but was never able to really scale them so I ended up either closing or selling(selling only twice). I even now have the bones of multiple businesses in my GitHub ready to get a proper GUI and be marketed for potentially millions per year. But I have no one to cofound with and a lot of my projects end up going in the closet. If I stuck with my first couple e-com stores when the going got tough I bet I’d be a millionaire, instead I fucked my life up by not doubling down when I should have. I think this is classic for someone with ADD like myself. Master of none, generally great at a lot, never appreciated for anything.

  • TomFromOpenScreensITBEnglish
    1·
    1 year ago

    Real estate is definitely lower risk than anything that involves intellectual property, like Software.

    That said, startups do have financing tools that reduce the risk to the founders and pass it on to investors. I don’t know if your father self funded, but if you get an angel investor or incubator to invest, then you can work towards the dream while still earning a steady income.

    Still, real estate is always going to be a lower risk endeavor, so you’ll have to do some soul-searching there.

  • founderscurveBEnglish
    1·
    1 year ago

    being in real estate the way you describe - working up the ladder, getting expertise and experience, getting paid salary and bonus - will allow you to then save for a deposit and navigate that industry, meaning that when you do finally buy your own property you’ll have the network and experience to make it a success.

    so its a very good idea, and…

    its not mutually exclusive to having a side hustle developing a startup or investing in a startup.

    you can do both, at the same time, so long as you are clear on your commitments.

  • DisruptorMorBEnglish
    1·
    1 year ago

    Well… I can speak for myself. I invest in two startups one about innovation and the other one about games. The reason behind those investment is only because I like the ideia and feel like giving it a shot, otherwise I wouldn’t be investing in it. If there is more money on the table and I have access to some specialist I would probably invest more on startups, but that’s not my current situation.

    My main income source is real state. Find investors - buy property (with the least down payment as possible) - sell small portions of the land (in a multifamily condominium) - offer the service to build the house. And that’s it… Just repeating the process. It takes some time to execute all of it but it’s worth it. I get money throught loans so there is almost no income tax. That’s the game you know…

    1. Study the concept behind this plan (Robert Kiyosaki + David C Barnett + Roland Fraiser; can give you some perspective about how I works);

    2. Find some practical scenario. Perhaps a piece of Real State that you can genuine see the opportunity, and just run throught the numbers until you make it work. Sometimes we need to take money from one place to put somewhere else in order to adjust the plan or even change negotiations;

    3. When you can see the whole process working it is just a matter of finding money to invest in your vision.

    Startups is always going to be a great option to invest it just consume a lot of expertise and time in order to give great results. If you don’t want to 15x you money in the long run, you can just find some simple investments to keep you annually cash flow high.

    One big deal can grant you with some millions just in a matter of months. Good luck on your journey 💪